Power tariffs for low-income consumers to revert to previous rates

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A change is set to follow just one day after the announcement of higher electricity tariffs.

To shield low-income households from additional costs, the authorities will not apply the recent tariff increase to residential consumers in the first consumption categories.

These customers will continue to pay electricity bills at the previous rates. The Bangladesh Energy Regulatory Commission (BERC) may announce the decision as early as today, Thursday.

The Bangladesh Power Development Board (PDB) has requested the withdrawal of the tariff increase for residential consumers in the Lifeline and first-tier categories. It submitted the request to BERC today, Thursday.

According to sources, BERC is consulting all electricity distribution companies and is expected to make a decision shortly.

BERC Chairman Jalal Ahmed told Prothom Alo, "BPDB has applied on behalf of all companies for the withdrawal of the tariff increase for these two consumer categories. The Commission is considering the matter. We are now holding separate discussions with all the companies. We will announce a decision soon."

On Wednesday, authorities increased electricity prices at both the wholesale and retail levels.

The increase would place an additional financial burden on consumers across all categories, including marginal and low-income electricity users in rural areas.

The authorities increased bulk electricity tariffs by an average of 19.85 per cent, transmission charges by 23.96 per cent, and consumer-level electricity tariffs by an average of 16.68 per cent. The new rates are scheduled to take effect from June.

Among residential consumers, the Lifeline category experienced the smallest increase. Customers in this category use a maximum of 50 units of electricity per month.

Typically, they operate one fan and one or two light bulbs in their homes. The tariff for these consumers increased by Tk 0.69 per unit. PDB had proposed keeping the tariff unchanged for this category.

However, the authorities approved an increase after considering a proposal from the Rural Electrification Board (REB).

As a result, these low-income consumers could collectively pay an additional Tk 7.81 billion (781 crore) annually.

Under the revised tariff structure, marginal residential consumers using between 0 and 50 units of electricity per month would pay Tk 5.32 per unit, an increase of Tk 0.69. Consequently, their monthly electricity bill would rise by Tk 34.50.

Consumers using between 0 and 75 units per month would pay a new tariff of Tk 6.18 per unit.

The increase for this category amounts to Tk 0.92 per unit, raising monthly bills by Tk 69.

Consumers in these two categories generally use several light bulbs and one or two fans. Together, they account for approximately 65 per cent of all electricity consumers in the country.

If the authorities revise the tariffs as proposed, consumers in the residential Lifeline category will continue to pay the previous rate of Tk 4.63 per unit, while first-tier consumers using up to 75 units of electricity will pay Tk 5.26 per unit.